The mortgage market staged a slight comeback in May with approvals for both home purchase and remortgages increasing, Bank of England data shows.

Both types of lending had experienced falls in April.

Approvals for new home loans increased by 2.5% to 64,526, above the previous six-month average of 63,803. It is the first time approvals for home purchase have increased in two months.

However, remortgages continue to drive the market. Approvals were up 7.7% to 50,979, taking them above the previous six-month average of 48,494.

Commenting on the figures, Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “People who need to move or sell are getting on and doing it, whether that be because of death, divorce or a job move.

“The slowdown in the market is down to the lack of discretionary movers – they are more likely to sit on their hands and delay making a decision hoping for better value in the future.

“Of course, it is all relative. If you are selling and buying, any price movements will affect you both ways, but if you have sold, are renting and waiting, then the wait continues.

“Interest rates are not likely to move in the short term at least, and the mortgage market remains ultra-competitive with lenders vying for market share.”